Benefits for working age claimants will be capped at £26,000 a year, which is the average annual income of a working household. This means no household will receive more than £500 a week or £350 if it is single person household in benefits.
Who will be affected?
Everyone of working age except those in receipt of
- Working Tax Credit
- Disability Living Allowance or Personal Independence Payment
- Attendance Allowance
- Industrial Injury Benefit
- War Disablement Pension
- Armed Forces Compensation
- Employment and Support Allowance (if receiving the support component)
Please note the number of our customers affected will be very low.
When is it happening?
If you are affected by the benefit cap you should have received a letter from the Department of Work and Pensions. Originally, this change was due to happen in April but has now been delayed until later in 2013.
What Can I do?
- Contact your Benefits and Money Advisor for advice
- Contact the Department for Work and Pensions helpline, especially if you think an error has been made
- Apply to your local authority for a discretionary housing payment
- If you work, consider increasing your hours or find work – http://www.careeradviceonline.co.uk/finding-a-job/jobcentre-plus.html
Work out your budget and see if you can save any money by shopping around, switching energy suppliers, renegotiating any loan payments arrangements
If you have questions, or are worried about any of what you have read here, or anything you’ve seen in the news, contact your Benefit & Money Advisor.